Below is a Farm own by a friend of mine , need the best rate for refinancing of $2 million, asap?

The property appraised for $5,868,000.00 , He need $2 million

 

• First $1.4 Million               9.5%
• 2^nd $400K                          12%

Personal guarantee is fine but he doesn’t want to involve any other collateral.
 

 

Site Area

The subject 100.16 acres is located on East Gwillimbury, On, close to HWY 404, in a predominantly rural farming area.

This property has a frontage of approx. 1.2 Km , and represents rural farmland that is planted annually for cash crops.

 

Improvements:

There is a very picturesque gravel-based laneway lined with mature deciduous trees along both sides of the driveway entrance, which leads up to the 1.5 storey farmhouse, in addition to four (4) barns, and storage out buildings. Farmhouse:

This residence is framed and was recently upgraded (approximately $138,000). New upgrades were included as: change furnace from oil to gas, new windows, new steel roof, new washrooms, new driveway, new 600 amp 3 phase electrical power. It also contains a kitchen, family room, living room, washrooms, and storage areas, on the ground floor. The second floor has a total of 3 bedrooms, and washrooms. The basement is full, and contains a hot water tank. There is a small porch area located on the north side of the dwelling, which is considered to be in only fair to average condition, given the current estimated age. I also observed overhead hydro, a drilled well, and a septic sewage system to be in place. Outbuildings: The four (4) service buildings consist of a two-level livestock barn, as well as three (3) additional storage barns suitable for housing related farming equipment, etc. All buildings are metal clad with metal pitch roofs, and are still considered to be in fair, workable condition. I observed the farm to still be operating for growing cash crops. According to information provided, the subject property has an annual rental income for the farm (cash crop use) and farmhouse, for a total of $144,000 per annum ($12,000 per month). In summary, the existing property does not appear to have any negative features other than what is noted here before. There is a gated entrance located at the main road frontage, and perimeter fencing is also in place. Overall, in my opinion, this farm property represents a sound rural investment at the estimated current market value, as concluded herein.